If this question has been asked before, please point me to that Q&A for the correct answer. Details:
- Purchased a rental SFR, placed it in service on 05/2021.
- Total property basis = $127,505
- Original depreciable basis, net of land = $86,133
- Depreciation is straight line over 27.5 years
- Accumulated depreciation until 12/31/2022 = $5,090
- Property was reported on our own 1040 schedule E (MFJ situation)
- On 1/1/2023 title to the property transferred to a newly established partnership [LLC], we are the only 2 members.
Using Turbotax Business to enter all partnership info including this property and create a 1065.
Specific questions:
1) Do I tell TT this property was placed in service on 05/2021 or on 01/2023? Turbotax is upset about a property placed in service before the partnership was established...
2) What do I tell TT is the depreciable basis ?
3) Where and how do I tell TT about the previous accumulated depreciation?
4) How do I convince TT to continue calculating the annual depreciation [= $3,132] and the accumulated depreciation correctly ?
5) What if anything am I missing in this context ?
Responses to your questions:
You are probably going to be better off entering this asset in Forms Mode on the Asset Entry Worksheet and Form 8825 Worksheet.
The property's basis (and attributes) should carry over to the partnership.
I will also page Champ @Rick19744 for input.
@Anonymous_ Understand the conceptual guidance, but - is it possible to get specific answers to my questions 1) to 5) ? This will help me the most.
Responses to your questions: